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| Public Act 094-0150 |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Credit Union Act is amended by | ||||
changing Sections 13, 42, 47, and 70 as follows:
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(205 ILCS 305/13) (from Ch. 17, par. 4414)
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Sec. 13. General powers. A credit union may:
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(1) Make contracts; sue and be sued; and adopt and use | ||||
a common seal
and alter the same;
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(2) Acquire, lease (either as lessee or lessor), hold, | ||||
pledge, mortgage,
sell and dispose of real property, either | ||||
in whole or in part, or any interest
therein, as may be | ||||
necessary or incidental to its present or future
operations | ||||
and needs, subject to such limitations as may be imposed
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thereon in rules and regulations promulgated by the | ||||
Director; acquire, lease
(either as lessee or lessor), | ||||
hold, pledge, mortgage, sell and dispose of
personal | ||||
property, either in whole or in part, or any interest | ||||
therein,
as may be necessary or incidental to its present | ||||
or future operations
and needs;
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(3) At the discretion of the Board of Directors, | ||||
require the payment of
an entrance fee or annual membership | ||||
fee, or both, of any person admitted to
membership;
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(4) Receive savings from its members in the form of | ||||
shares of various
classes, or special purpose share | ||||
accounts; act as custodian of its members'
accounts; issue | ||||
shares in trust as provided in this Act;
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(5) Lend its funds to its members and otherwise as | ||||
hereinafter provided;
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(6) Borrow from any source in accordance with policy | ||||
established by the
Board of Directors to a maximum of 50% | ||||
of capital, surplus and reserves;
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(7) Discount and sell any obligations owed to the | ||
credit union;
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(8) Honor requests for withdrawals or transfers of all | ||
or any part of
member share accounts, and any classes | ||
thereof, in any manner approved by
the credit union Board | ||
of Directors;
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(9) Sell all or substantially all of its assets or | ||
purchase all or
substantially all of the assets of another | ||
credit union, subject to the
prior approval of the | ||
Director;
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(10) Invest surplus funds as provided in this Act;
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(11) Make deposits in banks, savings banks, savings and | ||
loan associations,
trust companies; and invest in shares, | ||
classes of shares or share certificates
of other credit | ||
unions;
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(12) Assess charges and fees to members in accordance | ||
with board
resolution;
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(13) Hold membership in and pay dues to associations | ||
and organizations;
to invest in shares, stocks or | ||
obligations of any credit union organization;
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(14) Declare dividends and pay interest refunds to | ||
borrowers as provided
in this Act;
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(15) Collect, receive and disburse monies in | ||
connection with providing
negotiable checks, money orders | ||
and other money-type instruments, and for
such other | ||
purposes as may provide benefit or convenience to its | ||
members,
and charge a reasonable fee for such services;
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(16) Act as fiscal agent for and receive deposits from | ||
the federal
government, this state or any agency or | ||
political subdivision thereof;
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(17) Receive savings from nonmembers in the form of | ||
shares or share
accounts in the case of credit unions | ||
serving predominantly low-income
members. The term "low | ||
income
members" shall mean those members who make less than | ||
80% of the average for
all wage earners as established by | ||
the Bureau of Labor Statistics or those
members whose | ||
annual household income falls at or below 80% of the
median | ||
household income for the nation as established by the | ||
Census Bureau. The
term "predominantly" is defined as a | ||
simple majority;
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(18) To Establish, maintain, and operate terminals as | ||
authorized by
the Electronic Fund Transfer Act; and
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(19) Subject to Article XLIV of the Illinois Insurance | ||
Code, to act
as the agent for any fire, life, or other | ||
insurance company authorized by the
State of Illinois, by | ||
soliciting and selling insurance and collecting premiums
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on policies issued by such company; and may receive for | ||
services so rendered
such fees or commissions as may be | ||
agreed upon between the said credit union
and the insurance | ||
company for which it may act as agent; provided, however,
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that no such credit union shall in any case assume or | ||
guarantee the payment of
any premium on insurance policies | ||
issued through its agency by its principal;
and provided | ||
further, that the credit union shall not guarantee the | ||
truth of
any statement made by an assured in filing his | ||
application for insurance; and .
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(20) Make reasonable contributions to civic, | ||
charitable, or service organizations not organized for | ||
profit; religious corporations; and fundraisers benefiting | ||
persons in the credit union's service area.
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(Source: P.A. 92-608, eff. 7-1-02; revised 1-20-03.)
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(205 ILCS 305/42) (from Ch. 17, par. 4443)
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Sec. 42. Shares in trust.
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(1) Shares may be issued in trust to a member
as trustee or | ||
to an individual or corporate trustee. If a corporate trustee
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is a bank or trust company, shares may be issued to the | ||
corporate trustee
only if such bank or trust company is | ||
organized under the laws of
the State of Illinois or is a | ||
nationally chartered bank located principally
in the State of | ||
Illinois. An individual trustee shall be a member of the
credit | ||
union unless the person establishing the trust in respect to | ||
which
such shares are issued or each beneficiary of the trust | ||
is a member of the
credit union and the name of each | ||
beneficiary is disclosed to the credit
union. Shares may also | ||
be issued in the name of an individual or corporate
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representative under the Illinois Probate Act of 1975 for or
in | ||
respect to a member of a credit union. Shares may also be | ||
issued in
trust under the Illinois Funeral or Burial Funds Act, | ||
for or in respect
to a member of a credit union, to a trustee | ||
licensed under said Act.
Any credit union which issues shares | ||
in trust as provided in this Section
must be insured by the | ||
NCUA or another approved insurer. Payment of part or all of | ||
such shares to such trustee or member
shall, to the extent of | ||
such payment, discharge the liability of the credit
union to | ||
the member and the beneficiary and the credit union shall be | ||
under
no obligation to see to the application of such payment.
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(2) If a credit union's shares are insured as provided for | ||
in this Act,
such credit union shall have power to act as | ||
trustee or custodian under
individual retirement accounts or | ||
plans, health savings accounts, and similar tax-advantaged | ||
savings plans established pursuant to the Internal Revenue Code | ||
for its members or groups or
organizations
of its members | ||
provided the funds of such accounts or plans are invested
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solely in (1) share accounts of, or (2) share accounts and | ||
obligations issued
by such credit union. All funds held in such | ||
fiduciary capacity shall be
maintained in accordance with | ||
applicable statutes and regulations promulgated
thereunder by | ||
any authority exercising jurisdiction over such trusts or
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custodial accounts.
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(3) Notwithstanding any language to the contrary in this | ||
Section 42, a
credit union may act as trustee or custodian of | ||
individual retirement plans
of its members established | ||
pursuant to the Employee Retirement Income
Security Act of 1974 | ||
or self-employed retirement plans established pursuant
to the | ||
Self-Employed Individuals Retirement Act of 1962, and any laws
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amendatory or supplementary to such Acts, provided that:
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(a) All contributions of funds are initially made to a | ||
share account in
the credit union;
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(b) Any subsequent transfer of funds to other assets is | ||
solely at the
direction of the member and the credit union | ||
performs only custodial
duties, exercises no investment | ||
discretion and provides no investment
advice with respect | ||
to plan assets;
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(c) The member is notified of the fact that share | ||
insurance coverage is
limited to funds held in share | ||
accounts; and
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(d) The credit union complies with all applicable | ||
provisions of this Act
and applicable laws and regulations | ||
as may be promulgated by any authority
exercising | ||
jurisdiction over such trust or custodial accounts.
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(Source: P.A. 91-131, eff. 7-16-99; 92-608, eff. 7-1-02.)
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(205 ILCS 305/47) (from Ch. 17, par. 4448)
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Sec. 47. Loan Applications. Every application for a loan | ||
shall be made
in the manner prescribed by
writing upon a form, | ||
which the Credit Committee, credit manager, or loan
officer | ||
prescribes. The application shall state the purpose for which | ||
the
loan is desired, and the security, if any, offered. Each | ||
loan shall be evidenced
by a written document or by a record | ||
electronically stored or generated by any electronic or | ||
computer-generated process that accurately reproduces or | ||
records the agreement, transaction, act, occurrence, or event. | ||
The signature of any party to the loan includes any symbol | ||
executed or adopted, or any security procedure employed or | ||
adopted, using electronic means or otherwise, by or on behalf | ||
of a person with intent to authenticate a record.
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(Source: P.A. 81-329.)
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(205 ILCS 305/70) (from Ch. 17, par. 4471)
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Sec. 70. Use of name, sentence. | ||
(a) No individual
person, firm, association,
or body | ||
politic and corporate, including, without limitation, any | ||
corporation, limited liability company, general partnership, | ||
limited partnership, or joint venture that is not an authorized | ||
user
partnership,
or corporation, except corporations | ||
organized under this Act, the credit
union acts of other | ||
states, or under the Federal Credit Union Act,
associations
of | ||
such corporations, or subsidiaries of such associations, may | ||
use any
name or title which contains the words
"credit union" | ||
or any abbreviation thereof, and such use is a Class A
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Misdemeanor. For purposes of this Section, "authorized user" | ||
means a corporation organized under this Act, the credit union | ||
act of another state, or the Federal Credit Union Act, any | ||
association of such a corporation, and subsidiaries and | ||
affiliates of such an association.
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(b) If the Director of the Division of Financial | ||
Institutions of the Department of Financial and Professional | ||
Regulation finds that an individual or entity that is not an | ||
authorized user has transacted or intends to transact business | ||
in this State in a manner that has a substantial likelihood of | ||
misleading the public by: (i) implying that the business is a | ||
credit union or (ii) using or intending to use the words | ||
"credit union", or any abbreviation thereof, in connection with | ||
its business, then the Director of the Division of Financial | ||
Institutions may direct the individual or entity to cease and | ||
desist from transacting its business or using the words "credit | ||
union", or any abbreviation thereof. If the individual or | ||
entity persists in transacting its business or using the words | ||
"credit union", or any abbreviation thereof, then the Director | ||
of the Division of Financial Institutions may impose a civil | ||
penalty of up to $10,000 for each violation. Each day that the | ||
individual or entity continues transacting business or using | ||
the words "credit union", or any abbreviation thereof, in | ||
connection with its business shall constitute a separate | ||
violation of these provisions.
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(Source: P.A. 92-293, eff. 8-9-01.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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